Finance Minister Tendai Biti had to fast track the Money Laundering and Proceeds of Crime Bill in Parliament last week because it had been delayed by some members of the cabinet who were against the bill.
Besides, the bill had to be passed by 20 June, as this was the deadline given by the Financial Action Task Force (FATF) to comply or be excluded.
“When we were in cabinet, there are some people who tried to resist this bill,” Biti told the House. “You will only resist this bill if you are a thief and if you are laundering money, including diamond money, but any ordinary Zimbabwean will actually welcome this bill. It does not take a rocket scientist to guess who tries to resist this bill, which actually caused this unnecessary delay.”
The bill which was read for the first time on Wednesday was fast tracked and passed on Thursday.
It will enable authorities to, among other things:
- Identify the ultimate beneficial owner on whose behalf a transaction is being conducted;
- Prohibit financial institutions from allowing a customer to open an anonymous account or to open an account using a fictitious name;
- Shareholders and directors of financial institutions to pass a “fit and proper” test and removal of those who subsequently cease to meet the test;
- The establishment of a Recovered Assets Fund, wherein proceeds from Anti-money Laundering and Combating of Financing of Terrorism (AML/CFT) forfeited or confiscated property will be receipted.
Under the new law dealers in precious metals and minerals such as diamonds are now designated entities for AML/CFT purposes.
Biti said the implications of not passing the law by the deadline set by FATF was that Zimbabwe would be black listed and might not be able to do business with any of its trading partners including China.
Only two countries are on that black list: Democratic Republic of Korea and Iran.
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